Labour market growth slows in Q1 2025

Total employment grew by 2,400.

Singapore’s labour market continued to grow in the first quarter of 2025, but at a slower pace than the previous quarter, according to the Ministry of Manpower.

Total employment increased by 2,400, down from 7,700 in Q4 2024. Resident employment rose by 300 (from 1,400), and non-resident employment increased by 2,000 (from 6,300).

The overall unemployment rate inched up to 2.0% in March 2025, from 1.9% in December 2024. The resident unemployment rate rose to 2.9% (from 2.8%), whilst the citizen rate reached 3.1% (from 3.0%). Long-term unemployment amongst residents also rose slightly to 0.9%, remaining within non-recessionary norms.

Job vacancies rose from 77,500 in December 2024 to 81,100 in March 2025. The job vacancy rate increased from 3.1% to 3.2%. These figures do not reflect the potential impact of the Liberation Day tariff announcement on 2 April 2025.

Whilst vacancies rose across most sectors, signs of weaker hiring demand appeared in manufacturing.

Meanwhile, retrenchments fell slightly to 3,590 (from 3,680), with the rate holding steady at 1.5 per 1,000 employees. Fewer workers were placed on short work weeks or temporary layoffs, and the re-entry rate into employment improved to 60.6% (from 58.1%).
Hiring sentiment for Q3 2025 remains cautious.

Surveys in April and May showed 42.2% of firms plan to hire, up slightly from 40.5% earlier in the year.

The increase was driven mainly by professional services and financial services. Wage expectations remained stable, with 21.2% of firms indicating plans to raise wages in Q3, nearly unchanged from 21.7% previously.

The Ministry of Manpower has called on employers and workers to continue adapting to changes in the economy through upskilling and transformation.

Support measures include the upcoming SkillsFuture Workforce Development Grant, which will consolidate and streamline workforce schemes under Workforce Singapore and SkillsFuture Singapore.

Existing initiatives such as Career Conversion Programmes, the Mid-Career Pathways Programme, and the Productivity Solutions Grant for job redesign remain available.

Workers are encouraged to use the Career Health SG initiative, including tools like CareersFinder and coaching services provided by WSG and NTUC’s Employment and Employability Institute.

The SkillsFuture Jobseeker Support scheme, launched earlier this year, offers up to $6,000 in temporary financial support to those involuntarily unemployed.

Meanwhile, the Singapore Economic Resilience Taskforce is reviewing additional measures to support businesses and workers, including expanding job opportunities for fresh graduates and building long-term workforce capabilities.